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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into AutoZone, Inc. (NYSE: AZO)? Today, we examine the outcome of a twenty year investment into the stock back in 2002.

Start date: 12/16/2002


End date: 12/15/2022
Start price/share: $70.77
End price/share: $2,358.50
Starting shares: 141.30
Ending shares: 141.30
Dividends reinvested/share: $0.00
Total return: 3,232.63%
Average annual return: 19.15%
Starting investment: $10,000.00
Ending investment: $333,207.56

As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 19.15%. This would have turned a $10K investment made 20 years ago into $333,207.56 today (as of 12/15/2022). On a total return basis, that’s a result of 3,232.63% (something to think about: how might AZO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“Know what you own and why you own it.” — Peter Lynch